You are looking for a bank in which to open a checking account for your new part-time business. You estimate that in the first year, you will be writing 30 checks per month and will make three debit transactions per month. Your average daily balance is estimated to be $900 for the first six months and $2,400 for the next six months. Use the following information to solve the problem. Bank Monthly Fees and Conditions Intercontinental
Bank 1 $15.00 with $1,000 min. daily balance
-or-
$25.00 under $1,000 min.

Bank 2 $4.50 plus $0.40 per check over 10 checks monthly
-or-
$1.00 per debit transaction

Bank 3 $5 plus $0.25 per check
-or-
$2.00 per debit transaction

Bank 4 $8 plus $0.15 per check
-or-
$1.50 per debit transaction

Required:
a. Calculate the cost (in $) of doing business with each bank for a year for each bank.
b. Which bank should you choose for your checking account?

1. Bank 1
2. Bank 2
3. Bank 3
4. Bank 4